US/China poised to delay tariffs: ASX set to open flat

Market Reports

by Rachael Jones

Following a lacklustre day yesterday from the US markets, the Australian share market looks set to open flat this morning. It’s been reported that US and China are planning on delaying the next round of tariffs set for Sunday. The plan was for 15 per cent tariffs on around $160 billion worth of Chinese goods. This includes toys, phones, laptops and clothes. Meanwhile Democrats have reached an agreement with the Trump administration on moving forward with United States–Mexico–Canada Agreement. On the commodities front, gold has gained and oil rose modestly. 

Markets

The Dow Jones Industrial Average closed 0.1 per cent lower at 27,882, the S&P 500 also lost 0.1 per cent to 3133 and the NASDAQ fell 0.1 per cent to 8616.

European markets closed mixed: London’s FTSE lost 0.3 per cent, Paris rose 0.2 per cent and Frankfurt dipped 0.3 per cent.

Asian markets closed mixed: Tokyo’s Nikkei lost 0.1 per cent, Hong Kong’s Hang Seng fell 0.2 per cent and China’s Shanghai Composite closed 0.1 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 2 point rise. 

Yesterday, the Australian share market closed 23 points or 0.3 per cent lower at 6707.

Local economic news 

Westpac Melbourne Insitute consumer confidence December

Company news

The Flight Centre Travel Group (ASX:FLT) has expanded its global leadership team to increase the focus on leisure and corporate travel growth. Two of its most senior executives, Chris Galanty and Melanie Waters-Ryan, would move into newly created chief executive (CEO) roles.Chris Galanty was formerly the head of Flight Centre’s Europe, Middle East and Africa (EMEA) business. Melanie Waters-Ryan was formerly the company’s chief operating officer. Shares in The Flight Centre Travel Group (ASX:FLT) closed 1.7 per cent lower at $42.39 yesterday.

Currencies

One Australian Dollar at 9.00 AM was buying 68.10 US cents, 51.81 Pence Sterling, 74.04 Yen and 61.40 Euro cents.

Commodities 

Iron ore is trading 36 cents lower at $93.57.
Iron Ore futures suggest a 0.5 per cent fall.
Gold has gained $3.80 to US$1469 an ounce. 
Silver has gained $0.07 to US$16.71 an ounce. 
Oil has risen by $0.07 to US$59.09 a barrel.